AB902: Bill Text

AB902,19,12 2. "Federal act" means the Electronic Signatures in Global and National Commerce Act, 15 USC 7001 to 7031.

AB902,19,15 (b) A provider may satisfy the requirements of sub. (14), (16), or (23) by means of the Internet or other electronic means if the provider obtains a consumer's consent in the manner provided by 15 USC 7001 (c) (1).

AB902,19,17 (c) The disclosures and materials required by subs. (14), (16), and (23) shall be presented in a form that is capable of being accurately reproduced for later reference.

AB902,19,21 (d) With respect to disclosure by means of an Internet Web site, the disclosure of the information required by sub. (14) (d) shall appear on one or more screens that contain no other information and that the individual shall see before proceeding to assent to formation of a program.

AB902,19,25 (e) At the time of providing the materials and agreement required by subs. (14) (c) and (d), (16), and (23), a provider shall inform the individual that upon electronic, telephonic, or written request, it will send the individual a written copy of the materials, and shall comply with a request as provided in par. (f).

AB902,20,8 (f) If a provider is requested, before the expiration of 90 days after a program is completed or terminated, to send a written copy of the materials required by subs. (14) (c) and (d), (16), and (23), the provider shall send them at no charge within 3 business days after the request, but the provider need not comply with a request more than once per calendar month or if it reasonably believes the request is made for purposes of harassment. If a request is made more than 90 days after a program is completed or terminated, the provider shall send within a reasonable time a written copy of the materials requested.

AB902,20,11 (g) A provider that maintains an Internet Web site shall disclose all of the following on the home page of its Web site or on a page that is clearly and conspicuously connected to the home page by a link that clearly reveals its contents:

AB902,20,12 1. Its name and all names under which it does business.

AB902,20,14 2. Its principal business address, telephone number, and electronic mail address, if any.

AB902,20,18 (h) Subject to par. (i), if a consumer who has consented to electronic communication in the manner provided by 15 USC 7001 withdraws consent as provided in 15 USC 7001, a provider may terminate its agreement with the consumer.

AB902,20,22 (i) If a provider wishes to terminate an agreement with a consumer pursuant to par. (h), it shall notify the consumer that it will terminate the agreement unless the consumer, within 30 days after receiving the notification, consents to electronic communication in the manner provided in 15 USC 7001 (c).

AB902,20,24 (16) Form and contents of agreement. (a) An agreement shall satisfy all of the following:

AB902,20,25 1. Be in a record.

AB902,21,1 2. Be dated and signed by the individual.

AB902,21,3 3. Include the name of the individual and the address where the individual resides.

AB902,21,4 4. Include the name, business address, and telephone number of the provider.

AB902,21,5 5. Be delivered to the individual immediately upon formation of the agreement.

AB902,21,6 6. Disclose all of the following:

AB902,21,7 a. The services to be provided.

AB902,21,9 b. The amount, or method of determining the amount, of all fees, individually itemized, to be paid by the individual.

AB902,21,10 c. How the provider will comply with its obligations under sub. (23) (b).

AB902,21,11 d. That the individual may cancel the agreement as provided in sub. (17).

AB902,21,13 e. That the individual may contact the division with any questions or complaints regarding the provider.

AB902,21,15 f. The address, telephone number, and Internet address or Web site of the division.

AB902,21,18 (b) For purposes of par. (a) 5., delivery of an electronic record occurs when it is made available in a format in which the individual may retrieve, save, and print it and the individual is notified that it is available.

AB902,21,21 (c) If the division supplies the provider with any information required under par. (a) 6. f., the provider may comply with that requirement only by disclosing the information supplied by the division.

AB902,21,22 (d) An agreement shall provide all of the following:

AB902,22,2 1. That the individual has a right to terminate the agreement at any time, without penalty or obligation, by giving the provider written or electronic notice, in which event all powers of attorney granted by the individual to the provider are revoked and ineffective.

AB902,22,5 2. That the provider will notify the individual within 5 days after learning of a creditor's decision to cease negotiations with the provider and that this notice will include all of the following:

AB902,22,6 a. The identity of the creditor.

AB902,22,7 b. The right of the individual to modify or terminate the agreement.

AB902,22,14 (e) An agreement may confer on a provider a power of attorney to settle the individual's debt for no more than 50 percent of the amount of the debt. An agreement may not confer a power of attorney to settle a debt for more than 50 percent of that amount, but may confer a power of attorney to negotiate with creditors of the individual on behalf of the individual. An agreement shall provide that the provider will obtain the assent of the individual after a creditor has assented to a settlement for more than 50 percent of the amount of the debt.

AB902,22,15 (f) An agreement may not do any of the following:

AB902,22,17 1. Provide for application of the law of any jurisdiction other than the United States and this state.

AB902,22,21 2. Except as permitted by 9 USC 2 or ch. 788, contain a provision that modifies or limits otherwise available forums or procedural rights, including the right to trial by jury, that are generally available to the individual under law other than this section.

AB902,22,23 3. Contain a provision that restricts the individual's remedies under this section or law other than this section.

AB902,22,24 4. Contain a provision that does any of the following:

AB902,23,2 a. Limits or releases the liability of any person for not performing the agreement or for violating this section.

AB902,23,4 b. Indemnifies any person for liability arising under the agreement or this section.

AB902,23,7 (g) All rights and obligations specified in par. (d) and sub. (17) exist even if not provided in the agreement. A provision in an agreement which violates par. (d), (e), or (f) is void.

AB902,23,13 (17) Cancellation of agreement; waiver. (a) An individual may cancel an agreement before midnight of the 3rd business day after the individual assents to it, unless the agreement does not comply with par. (b) or sub. (16) or (24), in which event the individual may cancel the agreement within 30 days after the individual assents to it. To exercise the right of cancellation, the individual shall give notice in a record to the provider. Notice by mail is given when mailed.

AB902,23,15 (b) An agreement shall be accompanied by a form that contains all of the following in boldface type, surrounded by bold black lines:

AB902,23,16 Notice of Right of Cancellation

AB902,23,19 You may cancel this agreement, without any penalty or obligation, at any time before midnight of the 3rd business day that begins the day after you agree to it by electronic communication or by signing it.

AB902,23,20 To cancel this agreement during this period, send an e-mail to:

AB902,23,21 ...........................................................

AB902,23,22   E-mail address of provider

AB902,23,23 or mail or deliver a signed, dated copy of this notice, or any other written notice to:

AB902,23,24 ........................................................... at ..........................................................

AB902,23,25     Name of provider            Address of provider

AB902,24,1 before midnight on: ............................................................

AB902,24,2                  Date

AB902,24,4 If you cancel this agreement within the 3-day period, we will refund all money you already have paid us.

AB902,24,5 I cancel this agreement,

AB902,24,6 .......................................................................

AB902,24,7      Print your name

AB902,24,8 .......................................................................

AB902,24,9       Signature

AB902,24,10 .......................................................................

AB902,24,11        Date

AB902,24,16 (c) If an individual terminates an agreement that is not otherwise subject to par (a), and the individual has fulfilled his or her obligations under the agreement, the provider shall refund 65 percent of any collected fees, excluding enrollment or setup fees and fees earned on debt settled at the time of the termination of the contract.

AB902,24,21 (18) Required language. Unless the division, by rule, provides otherwise, the disclosures and documents required by this section shall be in English. If a provider communicates with an individual primarily in a language other than English, the provider shall furnish a translation into the other language of the disclosures and documents required by this section.

AB902,24,24 (19) Fees and other charges. (a) A provider may not impose charges or receive payment for debt-settlement services until the provider and the individual have signed an agreement that complies with subs. (16) and (24).

AB902,25,5 (b) If an individual assents to an agreement, a provider may not impose a fee or other charge for educational or counseling services, or the like, that is not provided for in writing in the agreement. If a payment to a provider by an individual under this section is dishonored, a provider may impose a reasonable charge on the individual.

AB902,25,8 (20) Voluntary contributions. A provider may not solicit a voluntary contribution from an individual or an affiliate of the individual for any service provided to the individual.

AB902,25,11 (21) Voidable agreements. (a) If a provider imposes a fee or other charge or receives money or other payments not authorized by sub. (19) or (20), the individual may void the agreement and recover as provided in sub. (31).

AB902,25,13 (b) If a provider is not licensed as required by this section when an individual assents to an agreement, the agreement is voidable by the individual.

AB902,25,15 (c) If an individual voids an agreement under par. (b), the provider does not have a claim against the individual for breach of contract or for restitution.

AB902,25,18 (22) Termination of agreements. If an individual who has entered into a fee agreement fails for 60 days to make payments required by the agreement, a provider may terminate the agreement.

AB902,25,22 (23) Periodic reports and retention of records. (a) If a creditor has agreed to accept as payment in full an amount less than the principal amount of the debt owed by an individual, a provider who has established a program for the individual shall document, in a record, an accounting of all of the following:

AB902,25,23 1. The total amount and terms of the settlement.

AB902,25,24 2. The amount of the debt when the individual assented to the program.

AB902,25,25 3. The amount of the debt when the creditor agreed to the settlement.

AB902,26,3 4. If the provider uses a fee agreement that calculates any portion of the fee based on a percentage of savings the individual realized from a settled debt, the calculation of a settlement fee.

AB902,26,9 (b) A provider shall provide the accounting required by par. (a) upon cancellation or termination of an agreement. Before cancellation or termination of any agreement, a provider shall also provide the accounting required by par. (a) after each settlement of a debt with a creditor on behalf of the individual, and within 5 business days after a request by an individual, except that the provider need not comply with more than one such request in any calendar month.

AB902,26,13 (c) A provider shall maintain records for each individual for whom it provides debt-settlement services for 5 years after the final payment made by the individual and produce a copy of them to the individual within a reasonable time after a request for them. The provider may use electronic or other means of storage of the records.

AB902,26,15 (24) Prohibited acts and practices. (a) A provider may not, directly or indirectly, do any of the following:

AB902,26,18 1. Settle a debt on behalf of an individual for more than 50 percent of the amount of the debt owed a creditor, unless the individual assents to the settlement after the creditor has assented.

AB902,26,21 2. Take a power of attorney that authorizes it to settle a debt, unless the power of attorney expressly limits the provider's authority to settle debts for not more than 50 percent of the amount of the debt owed a creditor.

AB902,26,23 3. Exercise or attempt to exercise a power of attorney after an individual has terminated an agreement.

AB902,26,25 4. Initiate a transfer from an individual's account at a financial institution or with another person unless any of the following apply:

AB902,27,1 a. The transfer is a return of money to the individual.

AB902,27,3 b. The transfer occurs before termination of an agreement, is properly authorized by the agreement and this section, and is for payment of a fee.

AB902,27,5 c. The transfer is in payment of a creditor to fund a negotiated settlement of which both the settlement and transfer of money has been authorized by the debtor.

AB902,27,7 5. Offer a gift or bonus, premium, reward, or other compensation to an individual for executing an agreement.

AB902,27,11 6. Structure a program in a manner that would result in a negative amortization of any of an individual's debts, unless a creditor that is owed a negatively amortizing debt agrees to refund or waive the finance charge upon payment of the principal amount of the debt.

AB902,27,16 7. Settle a debt or lead an individual to believe that a payment to a creditor is in settlement of a debt to the creditor unless, at the time of settlement, the individual receives a certification or confirmation by the creditor that the payment is in full settlement of the debt or is part of a payment plan that is in full settlement of the debt.

AB902,27,17 8. Make a representation of any of the following:

AB902,27,18 a. That the provider will furnish money to pay bills or prevent attachments.